A prior disclosure is a formal, voluntary report filed with U.S. Customs and Border Protection notifying the agency of errors or omissions in previously filed customs entries. Under 19 U.S.C. 1592(c)(4), filing a valid prior disclosure before CBP discovers the violation significantly reduces the penalties the importer faces — typically from the fraud or gross negligence level down to the interest on the unpaid duties plus the lost revenue.
Why It Matters for Importers
Customs violations carry steep penalties. Under Section 1592, fraud can result in penalties up to the domestic value of the merchandise, gross negligence up to four times the loss of duties, and negligence up to two times the loss. A prior disclosure collapses these penalties to a fraction of what CBP would otherwise assess — typically just the unpaid duties plus interest. The difference between a $500,000 penalty and a $15,000 correction can be a single prior disclosure filing.
The catch is timing. A prior disclosure is only valid if CBP has not already started an investigation or discovered the violation. Once CBP issues a Request for Information (CF-28) or a Pre-Penalty Notice (CF-592), the window for prior disclosure has closed. This makes proactive compliance auditing essential — you need to find your mistakes before CBP does.
Key Requirements
- The disclosure must be filed before CBP initiates a formal investigation or discovers the violation on its own.
- It must identify the specific entries affected, describe the nature of the error, and quantify the loss of revenue to the government.
- The importer must tender the unpaid duties, taxes, and fees along with the disclosure.
- CBP must validate the disclosure as complete and accurate. Incomplete disclosures do not qualify for penalty reduction.
- Prior disclosures can cover classification errors, valuation issues, country of origin mistakes, marking violations, and other entry deficiencies.
When to File
The moment you discover a systemic error in your past customs entries — whether through an internal audit, a new broker's review of historical filings, or a change in CBP guidance — you should immediately consult with your customs broker about filing a prior disclosure. Delay increases the risk that CBP will find the error first and eliminate the option entirely.
For more on how CBP audits are increasing and what triggers them, read our article on the surge in customs audits.